Death of an airline

[SteveHunt]

How long does it take for an airline to be closed down when it stops being profitable?

I've seen carriers stay in operation when their current assets are hundreds of millions in the red. How much leeway does the virtual bank give before it closes the thing down?

[schro]

Approximately one real life week is given after the bankruptcy warning (below zero cash). This is usually about 1 game year in most worlds.

Realistically, unless the airline has a ton of assets that can be sold, it is going to be toast by the first or second month of no cash without much hope of recovery.

[SteveHunt]

Approximately one real life week is given after the bankruptcy warning (below zero cash). This is usually about 1 game year in most worlds.

Realistically, unless the airline has a ton of assets that can be sold, it is going to be toast by the first or second month of no cash without much hope of recovery.

Thanks for replying. It's a strange way to work things, but then again it is a game, and not the real world. Back IRL, an airline's planes get grounded the instant they can't pay for fuel anymore!

[gazzz0x2z]

(.../...)
Realistically, unless the airline has a ton of assets that can be sold, it is going to be toast by the first or second month of no cash without much hope of recovery.

It depends on the problem. If the problem is just f*'d pricing, you can recover very bad situations. In current GW2, I did see an opponent of my then mentee having negative cash, strikes in a few bases, -100 CI, still recovering after correcting prices. But all his other fundamentals were good : fleet choice, fleet use, route choices, etc..... I didn't think it was possible. He did it anyways.

But most other problems are structural problems that cannot be corrected once you're short of cash. Be it bad airplanes leased for too long, bad scheduling, flying only overloaded routes with unadapted birds, etc. All this needs cash to change the planes, or the slots. And this is 99% of the situations, where your diagnostic applies : the company is toasted. You can already plane flights as if it was not there.

[SteveHunt]

It depends on the problem. If the problem is just f*'d pricing, you can recover very bad situations. In current GW2, I did see an opponent of my then mentee having negative cash, strikes in a few bases, -100 CI, still recovering after correcting prices. But all his other fundamentals were good : fleet choice, fleet use, route choices, etc..... I didn't think it was possible. He did it anyways.

But most other problems are structural problems that cannot be corrected once you're short of cash. Be it bad airplanes leased for too long, bad scheduling, flying only overloaded routes with unadapted birds, etc. All this needs cash to change the planes, or the slots. And this is 99% of the situations, where your diagnostic applies : the company is toasted. You can already plane flights as if it was not there.

I'm just trying out a few things in one the Beginner worlds, which is where players can happily try things that lead to disaster. I have indeed started flights in preparation for their final burial.